Head office expenses

Head Office Expenses – Head office expenses are the costs incurred by a company’s central or main office in managing, coordinating, and overseeing the operations of its branches, subsidiaries, or departments. These expenses typically include: Salaries and benefits of top executives and administrative staff Rent or lease for the office premises Utilities such as electricity, water, and internet Office supplies and equipment Professional fees (legal, audit, consultancy) Other administrative costs required for smooth head office operations These expenses are essential for maintaining the corporate infrastructure, strategic planning, and decision-making processes. In accounting, they may be allocated to various departments or subsidiaries based on usage or revenue contribution.

Example: A multinational company’s head office pays ₹50 lakh annually for executive salaries, office rent, utilities, and administrative services, which is recorded as head office expenses in the financial statements.